Our client had a problem. She was under contract to buy a cottage-style home in Texas to use as a rental investment property. However, she was having no luck finding a lender willing to lend to her.
Her income was negatively impacted by the COVID pandemic as well as her ongoing divorce. Therefore, she was unable to show enough income through her tax returns, and her debt-to-income ratio (DTI) was too high.
We found the solution for her – the DSCR program. The debt service coverage ratio (DSCR) measures the property’s net cash flow, after accounting for the property taxes, the cost of insurance, and the expected mortgage payments.
Because the lender is focused on the property, rather than the borrower, it’s possible to qualify for a DSCR loan without using the borrower’s tax returns or current personal or business income.
And, luckily, to get her across the finish line, our client received gift funds from her father to help pay for the down payment and closing costs and to satisfy the lender’s reserves requirement.
Even if you have DTI issues, or even if you have zero personal income, you can still qualify for an investment property loan. Learn more about our creative loan programs for investment properties here.
Contact us today to get started.
